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Phil Spencer's Top 20 Ways To Add Value To Your Home

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http://www.telegraph.co.uk/property/buyingsellingandmoving/7906602/Phil-Spencers-top-20-ways-to-add-value-to-your-home.html

From extensions and kitchen upgrades to soft furnishings, Christopher Middleton hears Phil Spencer's tips on how to set your house apart from all the others – and get it sold.

If anyone should have an idea where the property market is heading, it’s Phil Spencer.

For the past 10 years, he and the unstoppable Kirstie Allsopp have been finding and buying houses in the full glare of national television, as presenters first of Location, Location, Location and later Relocation, Relocation.

He’s seen prices soar and he’s seen prices plummet; so which way does he see them going next?

“It is very difficult to fathom what is going on at the moment,” he says. “One set of stats says the market is going up and another says it’s going down.

“Then you have to look at the year we have had so far. First, there was the snow, then the general election. Next, everyone said wait until the World Cup is over, now everyone’s saying wait until the summer is over. In September, though, I am convinced things will become clearer.

“Of course, one thing looks certain already, which is that there is going to be a rise in unemployment, particularly in the public sector. That is bound to affect the housing market in those areas where many people are employed by the state.

“Clearly, the market overall is not going to be rising by 10, 15 or 20 per cent a year, like it has done in the past, but I do believe it will rise by small amounts, maybe two or three per cent a year.

“What this means, of course, is that owning a home is not, in itself, going to earn you enough money to move up to the next price bracket, to the next rung on the property ladder. You can’t just sit back and wait for your house to make you enough money to move on. You are going to have to take active steps to create that extra value for yourself.”

And here’s how Phil suggests you do it:

1 Go for a loft conversion

The easiest way to get an extra bedroom and bathroom. Not particularly disruptive, either, as most of the work can be done from outside. The key thing is to make sure access to the loft is easy and that the conversion fits the rest of the house, rather than looking grafted on. You will have to strengthen the floor joists, which will raise the floor level, so make sure you leave yourself with sufficient ceiling height to stand up in. Spend £20,000 on a loft conversion and you can add £40,000 value to your house. I am always wary of quoting figures, but for the purposes of this article, I am using a survey of 110 estate agents, carried out by mortgage lender GE Money, which concluded that a loft conversion adds an average 12.5 per cent to the selling price.

2 Build a conservatory

Extending your living space is always a good idea, but the danger is that your conservatory ends up looking like something just bolted on the back. Make sure the conservatory matches the style of the rest of the house. Don’t make it seem as if it’s in any way separate, with its own entrance, for example. You can enhance the feeling of space and flow by installing the same flooring throughout your downstairs living area. It leads the eye on and ensures that the conservatory feels part of the rest of the house. A conservatory (cost £5,000-£30,000) can add around 7 per cent to the value, while a full-blown extension (£10,000-£30,000) adds 11 per cent.

Sorry if already posted, but I thought people might like this wisdom. :P

More at the link.

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Phil Spencer, the man who was so unlucky he got hit by the Uk property crash, his company went bankrupt, he then moved to Australia just in time for another property crash

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For a property expert, his logic's a bit wonky:

“Clearly, the market overall is not going to be rising by 10, 15 or 20 per cent a year, like it has done in the past, but I do believe it will rise by small amounts, maybe two or three per cent a year. What this means, of course, is that owning a home is not, in itself, going to earn you enough money to move up to the next price bracket, to the next rung on the property ladder. You can’t just sit back and wait for your house to make you enough money to move on.

Has this ever been true? Surely in boom years any money your house "earns" wouldn't compensate for the increasing gap to the next price bracket.

Edited by RentingForever

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Anyway, this is good news. If panicky sellers follow his advice, it just means a general uprating of the quality of house coming to market - conservatories, loft rooms etc. Plenty of extra "value", but because so many people will be doing it, little extra "price".

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Has this ever been true? Surely in boom years any money your house "earns" wouldn't compensate for the increasing gap to the next price bracket.

Yes, but you sell a 2-bed house with decking and twigs and trade up to a 4-bed w/o decking and twigs for the same price. Easy-peasy.

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Yes, but you sell a 2-bed house with decking and twigs and trade up to a 4-bed w/o decking and twigs for the same price. Easy-peasy.

But his argument is that because HPI is in low figures, you can't simply sit back and let your house "earn" enough to enable you to upgrade. Implying that during the high HPI years this was possible. But during high HPI the next level up is inflating away from you, so the increase in the value of your house is no help at all.

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But his argument is that because HPI is in low figures, you can't simply sit back and let your house "earn" enough to enable you to upgrade. Implying that during the high HPI years this was possible. But during high HPI the next level up is inflating away from you, so the increase in the value of your house is no help at all.

Yeah, he really is missing the fundemental point here. Rapid HPI leads to the rungs on the proverbial ladder getting increasingly far apart.

If you buy a house for £100K but aspire to live in one that is £200K you have 'only' £100K to find. If prices all increase by 50% then you have suddenly a £150K gulf yes you have 'made' £50K on your house but you are not any closer to the aspirational house without a liar loan or two.

Do you think Mr Spencer does not understand this or is he deliberatly talking this way to somehow justify his stance that rising prices can only ever be a good thing? It is the concept that a rising value is some how 'earning' you anything that is most at fault here it is earning you nothing until you downsize or 'cash in' your investments.

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Add value to your house is easy right now. Pick the house that you want , or the area that you want to buy in and don't buy it now wait for the fall in prices.

Meanwhile invest the money that you are going to save from waiting to buy. When you do buy in a few years time you will have the added value in your pocket in cash , not on paper.

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For a property expert, his logic's a bit wonky:

He doesn't have any logic, just spouts out the stats, which mean nothing to him because he is unable to do any interpretations of his own. He sees property as the B all and end all of the economy, and cannot think outside the box. In my view the most annoying tit on telly who is soooo full of his own importance.

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Do you think Mr Spencer does not understand this or is he deliberatly talking this way to somehow justify his stance that rising prices can only ever be a good thing?

I am not sure. It is such a simple concept. Once you explain the simple example of the 50/100k house Vs 100% increase or 0% increase - it all becomes clear to even rather brainwashed people. I have never experienced anyone who does not get this after a quick chat.

So is he just mega stupid, mega brainwashed (Perhaps by his own chat ?) or just lying ?

One of the three anyway.

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No good spending good money tarting a house up, even fewer can then afford to buy it.......anyway the costs and fees buying a house would pay for a loft conversion and/or conservatory......the key is to sell the house, not to put out of the reach of even more suitable buyers. ;)

Edited by winkie

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But his argument is that because HPI is in low figures, you can't simply sit back and let your house "earn" enough to enable you to upgrade. Implying that during the high HPI years this was possible. But during high HPI the next level up is inflating away from you, so the increase in the value of your house is no help at all.

It works if you have a time-machine and you cross-breed it with an estate agent...

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Theres a failure in logic here also.

Say you add your conservatory for £15k, you can't simply tag on an extra £20k or £25k of value to your house! Not just that, conservatories lifespans aren't that great.

I can, though, see adding a loft conversion perhaps adding more value to a house than the cost of building it. But not by much

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Theres a failure in logic here also.

Say you add your conservatory for £15k, you can't simply tag on an extra £20k or £25k of value to your house! Not just that, conservatories lifespans aren't that great.

I can, though, see adding a loft conversion perhaps adding more value to a house than the cost of building it. But not by much

I would suggest that many would prefer to add their own value and add their own mark to a property....therefore would prefer to pay a lower price so that they can improve it in their own way in their own time if and when funds allow. ;)

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Phil says " Go for a loft conversion. The easiest way to get an extra bedroom and bathroom. Not particularly disruptive, either, as most of the work can be done from outside"

I converted my loft two years ago and i can assure you that 100% of the work was done inside the house. Who has a loft outside?

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We will have returned to sanity when people like him are no longer quoted. It will happen.

Or when they are quoted but only to make a point about how effing stupid their continuous ramping of property was for all these years.

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I am not sure. It is such a simple concept. Once you explain the simple example of the 50/100k house Vs 100% increase or 0% increase - it all becomes clear to even rather brainwashed people. I have never experienced anyone who does not get this after a quick chat.

So is he just mega stupid, mega brainwashed (Perhaps by his own chat ?) or just lying ?

One of the three anyway.

The message is a little more devious. A ponzi scheme needs rising prices to survive.

If you start out buying a house "worth" 100k and have a 10% deposit at the beginning of a bubble, you have 10k of equity and a 90k mortgage.

The only way to get onto the next "step" of the "ladder" without actually earning more money and / or accumulating savings with a 90% LTV max and no income multiple guidelines is for house prices to rise.

Let's say that house prices double, LTV requirements remain fixed at 90% and there are no income multiple restrictions, the buyer of the original home suddenly has 110k of equity which lets them buy a 1.1 m house with 990k of debt.

I have left out a few steps and oversimplified the problem by removing any restrictions on income multiples but this is effectively the rocket fuel that has propelled our bubble.

In any bubble, some principals make money (the sellers). All agents make money.

It is in the agents' best interest for the bubble to continue as they can churn many more properties when "equity" grows than they can in a static market where increased savings and larger incomes propel the move to the next "rung" of the "ladder"

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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